UPDATE: We are starting to release our allocations of 2019 Bordeaux, and, as expected, it’s a fantastic vintage. Better yet, these wines are being offered at great values for the collector! The 2019 vintage of Château Palmer, for example, was released at a price 33 percent lower than the just-as-impressive 2018 vintage. Additionally, critics such as…
What’s in store for the fine wine market this year? We’ve taken a look at the data and found a number of emerging trends that might impact your buying and selling decisions this year. Many of these trends have been gaining ground for a while, but this year they may have particular impact on the market.
Considering wine as an asset class can be an attractive option for collectors because trends in the wine market are generally more stable and predictable than they are in many other industries. Domaine de la Romanée-Conti (DRC), for instance, has held a strong share of the secondary market for decades, and this trend isn’t expected to reverse anytime soon. However, in order to maximize your returns, you need to consider what makes wine a great investment, how to identify wines that are worth keeping, and what to do with your bottles once you have them in your cellar.
With ripe, perfumed aromas and lively acidity, the 2017 Bordeaux vintage is shaping up to be a very approachable release for collectors. It’s true that these wines aren’t quite as exciting and sumptuous as the recent 2015 and 2016 vintages, but 2017 Bordeaux is still worth consideration. This vintage is perfect for early to mid-term drinking, with a great expression of terroir. However, before you invest in 2017 Bordeaux wine futures, keep in mind that quality varies in this vintage and many producers had to overcome poor weather conditions. You’ll need to choose your bottles carefully, but if you do, you can expect to find supremely drinkable, fresh-tasting wines that you can enjoy while your more legendary bottles mature.
Experts at Liv-ex have noticed a clear link between Brexit and wine prices. Since the Brexit vote passed on June 23, 2016, we’ve seen more expensive wines and higher profits for collectors on the fine wine market. This means Brexit could have an impact on your fine wine collection over the next few years.
Burgundy is making a huge comeback this year, and it’s all thanks to a group of spectacular wine producers. According to Liv-ex, Burgundian wines (both red and white styles) are gaining in popularity on the secondary market, and this increase in value is expected to continue over the next few years.
Danish author Isak Dinesen famously wrote, “There are many ways to the recognition of truth, and Burgundy is one of them.” The Burgundy region crafts some of the greatest bottles of Pinot Noir in the world, full of rich flavors that often grow more complex and beautiful with age. But over the past decade, Burgundy’s red wines have been overshadowed somewhat by Bordeaux. In the mid-2000s, as Bordeaux’s value skyrocketed (especially in countries like China), Burgundy’s value remained more steady. This caused some serious collectors to question whether Burgundian wine was worth the investment, or if Bordeaux would be a wiser choice.
White Burgundy has long been the gold standard for fine Chardonnay. For hundreds of years, collectors and enthusiasts have purchased these wines by the case, seeking the rich, oaky flavor profile that has made these wines so famous. However, Burgundy’s overall market value has fallen slightly over the past few years. While these wines are still among the most legendary and collectible in the world, the issues of premature oxidation and unpredictable market prices have caused some wine enthusiasts to turn away from white Burgundy.
In the late 1990s, you could buy Dominus’ flagship wine directly from the estate for just $65 per bottle; today, many of these wines are worth anywhere from $250 to $500 apiece on the secondary market, sometimes more if the vintage is especially high in quality. However, it’s not just the ever-increasing market value that draws wine enthusiasts to this producer. Dominus wine scores are also among the highest in Napa year after year, and the estate’s offerings very frequently outrank other superb California wineries–even the famed Opus One. Critics and collectors alike adore Dominus’ small-scale, Bordeaux-style wines, and analyses like the one Liv-ex publishes project that these wines may continue to grow in value significantly over the next few years. Now is perhaps the best time to invest in wines from this high-quality estate, and by following this guide, you can learn how to make the most out of every bottle you purchase.
My accountant is a dedicated wine enthusiast, and he always gives his clients the same informal investment advice: young Bordeaux will almost always give you a better return on investment than the stock market. He has his own collection of luxury wine bottles, and within just five years of buying his first “investment case,” he’s already seen a 16 percent increase in his wine’s value. By comparison, the stock market only offered him a 7 percent average return each year.
MENTIONED IN THIS POST: -Raveneau -Beaux Freres In the fine wine world, terroir is king. This is perhaps why hybrid wine grapes have earned such a sour reputation among top critics and collectors. Unlike sensitive vinifera grapes, which require very specific weather conditions and soil to thrive, hybrids can grow just about anywhere, and withstand…
MENTIONED IN THIS POST: -Coche-Dury -Bruno Clair -Montelena Making Chardonnay is usually a delicate process that requires a gentle hand–you have to carefully sort the fragile fruit into a nearly-airtight grape press, then slowly squeeze each cluster just enough to let the juice run out. But modern wineries are beginning to embrace a darker, more…